Respuesta :
The monthly payment for purchasing the home will be $457.85.
What is a monthly payment?
The term loan refers to a sort of credit vehicle in which a sum of money is lent to another party in exchange for the value or principal amount being repaid in the future.
Then the formula of monthly payment (MP) will be
[tex]\rm MP = P \times \dfrac{r(1+r)^n}{(1+r)^n - 1}\\[/tex]
In order to purchase a home, a family borrows $110,000 at 2.9% for 30 years.
We have
P = $110,000
r = 0.029 / 12 = 0.0024
n = 30 × 12 = 360
Then the monthly payment will be
[tex]\rm MP = 110,000\times \dfrac{0.0024(1+0.0024)^{360}}{(1+0.0024)^{360} - 1}\\\\[/tex]
On further solving, we have
MP = 110000 × 0.0024 × 1.723
MP = $ 457.85
More about the monthly payment link is given below.
https://brainly.com/question/14064255
#SPJ1
